as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; establishing a rural teacher 1.3 loan forgiveness program; providing for rulemaking; 1.4 appropriating money; proposing coding for new law in 1.5 Minnesota Statutes, chapter 122A. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. [122A.655] [RURAL TEACHER LOAN FORGIVENESS 1.8 PROGRAM.] 1.9 Subdivision 1. [ESTABLISHMENT OF ACCOUNT.] The rural 1.10 teacher loan forgiveness program is established to assist rural 1.11 communities with the recruitment and retention of teachers. The 1.12 rural teacher loan forgiveness program account is established in 1.13 the state treasury. The account consists of money appropriated 1.14 by the legislature and repayments and penalties collected under 1.15 subdivision 6. All money in this account is annually 1.16 appropriated to the commissioner of children, families, and 1.17 learning and must be used to repay loans of people enrolled in a 1.18 program of study designed to prepare them to teach in an 1.19 elementary or secondary school. 1.20 Subd. 2. [COMMISSIONER.] The commissioner shall adopt 1.21 rules to implement the rural teacher loan forgiveness program. 1.22 The commissioner shall select the school districts that qualify 1.23 for loan repayment, notify eligible school districts about the 1.24 program, develop and disseminate application materials to sites, 1.25 and carry out other activities necessary to implement this 2.1 section. 2.2 Subd. 3. [QUALIFYING SCHOOL DISTRICTS.] A school district 2.3 qualifies for the rural teacher loan forgiveness program if the 2.4 district is located in Minnesota outside the metropolitan area 2.5 defined in section 473.121, subdivision 2. 2.6 Subd. 4. [ELIGIBILITY.] A person's educational institution 2.7 loans may be forgiven if they are employed as a teacher, as 2.8 defined in section 122A.40, in a school district that qualifies 2.9 for loan repayment as determined by the commissioner, for up to 2.10 four years. Teachers who move from one eligible school district 2.11 to another remain eligible for the loan forgiveness program. 2.12 Subd. 5. [LOAN FORGIVENESS.] One-fourth of the principal 2.13 of the outstanding loan amount must be forgiven for each year of 2.14 eligible employment. A pro rata amount must be forgiven for 2.15 eligible employment during part of a school year, part-time 2.16 employment as a substitute teacher, or other part-time teaching 2.17 in an eligible school district. Loans for $2,500 or less may be 2.18 forgiven at the rate of up to $1,250 per year. 2.19 Subd. 6. [PENALTY.] If a teacher does not fulfill the 2.20 length of service requirement in subdivision 4 for full 2.21 repayment of all qualified loans, then the teacher must repay 2.22 the amount paid under the loan forgiveness program. The 2.23 commissioner may grant a waiver of all or part of the money owed 2.24 as a result of a penalty using criteria established by the 2.25 commissioner. 2.26 Sec. 2. [APPROPRIATION.] 2.27 $....... is appropriated from the general fund to the 2.28 commissioner of children, families, and learning in fiscal year 2.29 2000 for the rural teacher loan forgiveness program. 2.30 Any balance in the first year does not cancel but is 2.31 available in the second year. This appropriation is available 2.32 until June 30, 2001.